"Is luck playing the role in trading Currency Market?" a good friend of mine asked. I am giving him the answer now. "No"... If you think one trader can make more then 5% per month consistently based on luck, I advise you go to casino. Forex Market(FX) is not for those who want to try their luck. Then what? I was told to conduct FX course too, I humbly quote " I am not qualify." I recommend those who want to spend thousand of dollars to learn Forex simply flip the newspaper and google it will find many "Gurus" in the market.
Many people who go in the FX with as little as USD5000, and thinking to make million out of it. This is totally a wrong concept, it is better you go to the lottery shop and spend your money there. I should turn that statement around, if you have US1 million, you can easily make USD5000 out of it. Sound too little, then you won't survive long in FX market.
Let me share my views with you. If you don't like it, please give me constructive views and not try to promote your stuff here.
Beside all the basic rules which you can easily find on the Internet, trading successfully in FX is based on the personal style.
There are so-called scarp traders can do very well in their trading and make millions per year. This group have at least 2-3 screens in front of them and treat FX like a printing money machine, they act like "money changer" which you notice in the hypermarket. Sell and Buy in the split second.
The second group is so-called "swing trader". They will wait patiently and enter the trade when the opportunity comes. It is not easy to be in this group too. "The more you trade, the more you fail" is applied in this group which is totally opposite compare to the scarp trader.
The third group views trading currency as long term investment and apply "fundamental" analysis 90-100%. The long term investor will buy/sell and hold. If you want to be in this group, please make sure you do your margin calculation carefully. If the market is in your favor, you can make a lot by looking at your screen less the 3-4 times per month. It may go the other way as well.
The final group which I call it the "Ultimate Trader", simple...it combined all the 3 groups above.
When you have big fund and combined with all the basic rules, you can join this group. Can you find the Holy Grail in FX? Nope, I don't think so...
